Relaxo Footwears Limited (RELAXO)

Consumer Durables · Consumer Durables · NSE · Updated 13 August 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹419.45 ↓ 3.21% (1Y)

🎯 Key Takeaways

  • Relaxo Footwears is in a phase of controlled expansion with deliberate margin protection, transitioning from volume-driven growth to premiumization and store network scaling. Management is actively managing input cost inflation through pricing power and operational efficiency, while reinvesting in physical retail presence to capture market share sustainably.
  • ⚠️ Input cost inflation in COGS and labor remains a concern, particularly in key operational states, with management acknowledging 12-15% COGS and 25-30%
Market Cap
₹7,179
P/E Ratio
42.8
Div Yield
0.00%
Promoter
0.0%

📖 The Story

Relaxo Footwears is in a phase of controlled expansion with deliberate margin protection, transitioning from volume-driven growth to premiumization and store network scaling. Management is actively managing input cost inflation through pricing power and operational efficiency, while reinvesting in physical retail presence to capture market share sustainably.

📰 What's Happening

In Q4 FY26, Relaxo reported 8.1% YoY revenue growth to INR751 crores and 20.4% YoY PAT growth to INR68 crores, driven by 15-18% price hikes and GST rate reductions. EBITDA margin expanded to 16.5% and operating margin improved to 13.8%, despite 12-15% COGS inflation and 25-30% labor cost increases in one state. Management highlighted distributor normalization and GST benefits as tailwinds. Capex of INR180-200 crores includes INR30-35 lakhs per new exclusive brand outlet (EBO), targeting 100 store openings by December to drive 4-5% volume growth and premiumization. The board approved re-appointments of six directors, including promoter family members, for terms until March 31, 2029, and added Mr. Ashish Nigam as Head of Central Purchase to strengthen supply chain oversight.

Source: Stock Announcements

🔮 Management Outlook & What's Next

Management expects EBITDA margin to expand by over 1% further despite margin dilution from retail expansion, indicating confidence in scalable profitability. They anticipate sustained volume growth of 4-5% through new store openings and continued premiumization, supported by GST benefits and distributor network optimization.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Consumer Durables

Company MCap (₹ Cr) P/E ROCE ROE D/E
Titan Company Limited 3.70 L Cr 77.6 34.3% 41.0% 0.88
Asian Paints Limited 2.50 L Cr 65.0 26.0% 19.8% 0.04
LG Electronics India Limited 1.07 L Cr
Havells India Limited 75,873 54.2
Dixon Technologies (India) Limited 66,754 75.9
Berger Paints (I) Limited 62,200 54.5
Voltas Limited 40,722 56.8
Kalyan Jewellers India Limited 36,461 54.6
Blue Star Limited 34,091 61.2
Amber Enterprises India Limited 29,854 164.3 8.4% 4.1% 0.62

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Input cost inflation in COGS and labor remains a concern, particularly in key operational states, with management acknowledging 12-15% COGS and 25-30% labor cost increases. 2. Retail expansion may dilute margins in the near term, as explicitly flagged by management, requiring careful execution to avoid offsetting profitability gains. 3. Leadership continuity is tied to shareholder approval at the upcoming AGM, introducing governance-related dependency.

📋 Recent Filings

🧠 Analyst's Read

Relaxo is executing a disciplined growth strategy with improving margins and strategic capex allocation toward retail network enhancement. Investors should monitor the pace of store openings, margin trajectory amid inflation, and shareholder approval of leadership appointments at the upcoming AGM as key near-term catalysts.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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